Assume that CAPM is an appropriate model for pricing assets in the economy. Consider the following information about the market portfolio and the risk-free rate:E(Rm)=15% Σ m=20%Rf = 4%
Also, assume that the common stock of an Athlete Corporation has E(RB) =25% and Σ2 a= 52%
Required:
a.What is the systematic variance of the Athletes common stock?
